When it comes to investment, one sector that always seems to be the “go-to” sector for the retail and institutional investors is the “Retail sector”. A major contributor to the retail sector is the growth in the per capita income which consequently leads to an increase in the consumption demand. According to a World Bank report, In Australia, the GDP per capita has risen from US$42,709.80 in 2009 to $53,799.94 in 2017. Let’s look at some of the stocks in this sector.
- Woolworths Group Limited (ASX: WOW)
WOW is a supermarket giant based in Australia. In the stock price, we have witnessed quite a lot of volatility from the beginning of February 2019. A low of A$29.33 (on 1 February) was succeeded by a high of A$30.58 (on 13 February). Then on 20th February the price opened big gap down and made a low of A$28.300 thereafter with an equivalent sharp rally, surged to A$30.39 (14 March). This volatility was the result of a number of events like Half yearly result announcement, the appointment of a new director, FIRB approval. Now as all these events have already been accounted for, the prices are expected to be stable from here on. On the daily chart there is a bearish candle formation (down by 0.99% as on 12 March) near the current month’s high (A$30.39 on 14 March) which is not a good sign and caution may to be maintained at upper levels.
- Coles Group Limited (ASX: COL)
Coles is another ASX listed supermarket giant and deals in the distribution of consumer products like fresh food, liquor, groceries etc. On 19th and 20th February 2019, the stock saw a massive decline of more than 9% on account of “lower than expected” numbers. The numbers were down on all important parameters like EBIT, net profit, net tangible assets per share etc. Though the sales revenue increased but that wasn’t enough to stop the massive plunge. After this plunge, the stock has been consolidating in a tight range depicting the market’s indecisiveness about the price. Any closing above A$11.55 or below A$11.2 may initiate a new trend for the stock.
- Myer Holdings (ASX: MYR)
Myer Holdings is an Australian based retailer which sells a broad range of products like electrical goods, footwear, toys, beauty products etc. It is one of the hot stocks on ASX from the past couple of weeks. In the entire month of February 2019, the stock has consolidated in a tight range of A$0.385 to A$0.360. This range was broken out on 26th February 2019 when the stock made a high of $0.39. That breakout has led to a massive rally of more than 25% in the subsequent weeks. On the Weekly chart, the stock has taken support around A$0.36 and currently trading at A$0.510 as of 15th March 2019. The stock has fallen sharply by 8.9% on 15th March 2019 which was not a surprise considering the massive rally we have seen a few days back. However, the weekly trend is still positive and there is an emergence of Double bottom chart pattern which will be confirmed upon the breach of A$0.61.
- Super Retail Group (ASX: SUL)
Super Retail Group majorly sells auto parts and sports equipment. On 7th March 2019, the company announced the appointment of Gary Williams as the new Managing Director of Sport’s division. The new appointment of MD was taken positively by the investors and same day stock closed more than 4.8% up on ASX. In fact, at the current market price of A$7.81 as of 15th March 2019, the stock is up by more than 0.64%. The above news has been discounted in the market, but the current trend is still positive and may continue for the near future
- Accent Group Limited (ASX: AX1)
Accent Group is engaged in the retail distribution of apparel and footwear. The company retail brands like Hype DC, Podium Sports, CAT etc. From January 2019, the stock has been trading in a very smooth and stable uptrend. It has risen from A$1.125 from the day’s low as on 4th January 2019 to the high of A$1.575 on 4th March 2019. No significant correction has been seen on the weekly chart in these two months, stating continuous buying interest. This rally has been accompanied by bulk buying from the director Donna Player who acquired a total of 50,000 shares between 26th and 28th February 2019. The overall trend and sentiments of the investors are positive, but some correction may take place if the stock couldn’t breach the resistance of A$1.57 – A$1.58.
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